Asia Distillates-Upbeat sales activity on window; cash diffs flip to discount

Reuters
02-10

SINGAPORE, Feb 10 (Reuters) - Asia's middle distillates markets were upbeat as trading activity on the window gained momentum, with more March refiner selling interest also prevalent, though outlooks remained cautious.

Concerns of ample supply and thin demand continued to be the key focus in Asian markets, with some traders still expecting record-high imports into Singapore next month.

A handful of March offers did surface, in line with earlier expectations, as the usual refiners came out to sell their regular requirements.

More northeast Asia-origin offers are slated to emerge in the next few days as refiners more or less settle their contractual requirements first.

Taiwan's FPCC emerged with a March-loading 300,000-barrel 10ppm sulphur gasoil cargo for sale via a tender that closes on Tuesday. MDIS/TENDA

Refining margins GO10SGCKMc1 closed the trading session higher at $16.5 a barrel, mostly tracking paper market gains.

On the trading window, cash differentials GO10-SIN-DIF came under pressure again and flipped to discounts of 6 cents a barrel for the first time since September last year.

Regrade JETREG10SGMc1 widened slightly and fell back to discounts of nearly $1 a barrel.

SINGAPORE CASH DEALS O/AS

- Three gasoil deals, one jet fuel deal

NEWS

- Malaysia's state energy firm Petronas will reduce its workforce to ensure its long-term survival amid increasing challenges in the global operating environment, local media reported on Friday, citing the Petronas chief.

- Oil prices ticked higher on Monday even as investors weighed U.S. President Donald Trump's latest tariff threat, this time on all steel and aluminium imports, which could dampen global economic growth and energy demand. O/R

REFINERY NEWS REF/OUT

- Lyondell Basell Industries LYB.N completed the final shutdown of its 263,776 barrel-per-day Houston refinery, people familiar with plant operations said on Friday.

- Nigeria's Dangote Oil refinery, Africa's largest, could begin operating at full capacity in 30 days, the head of the refinery said on Monday.

PRICES

MIDDLE DISTILLATES

CASH ($/BBL)

ASIA CLOSE

Change

Prev Close

RIC

Spot Gas Oil 0.5%

86.43

0.38

86.05

GO-SIN

GO 0.5 Diff

-5.41

0.01

-5.42

GO-SIN-DIF

Spot Gas Oil 0.25%

91.20

0.38

90.82

GO25-SIN

GO 0.25 Diff

-0.64

0.01

-0.65

GO25-SIN-DIF

Spot Gas Oil 0.05%

90.76

0.10

90.65

GO005-SIN

GO 0.05 Diff

-1.08

-0.27

-0.81

GO005-SIN-DIF

Spot Gas Oil 0.001%

91.78

0.28

91.50

GO10-SIN

GO 0.001 Diff

-0.06

-0.10

0.04

GO10-SIN-DIF

Spot Jet/Kero

91.94

0.06

91.88

JET-SIN

Jet/Kero Diff

0.73

-0.19

0.92

JET-SIN-DIF

For a list of derivatives prices, including margins, please double click the RICs below.

Brent M1

BRENTSGMc1

Gasoil M1

GOSGSWMc1

Gasoil M1/M2

GOSGSPDMc1

Gasoil M2

GOSGSWMc2

Regrade M1

JETREGSGMc1

Regrade M2

JETREGSGMc2

Jet M1

JETSGSWMc1

Jet M1/M2

JETSGSPDMc1

Jet M2

JETSGSWMc2

Gasoil 500ppm-Dubai Cracks M1

GOSGCKMc1

Gasoil 500ppm-Dubai Cracks M2

GOSGCKMc2

Jet Cracks M1

JETSGCKMc1

Jet Cracks M2

JETSGCKMc2

East-West M1

LGOAEFSMc1

East-West M2

LGOAEFSMc2

LGO M1

LGOAMc1

LGO M1/M2

LGOASPDMc1

LGO M2

LGOAMc2

Crack LGO-Brent M1

LGOACKMc1

Crack LGO-Brent M2

LGOACKMc2

(Reporting by Trixie Yap; Editing by Shailesh Kuber)

((trixie.yap@thomsonreuters.com;))

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